Condition Type
SalesDefinition
A condition type in SAP refers to a component of pricing that determines how the price of a product or service is calculated.
Detailed Description
In SAP, a condition type is a detailed specification used in pricing procedures to determine the cost elements involved in pricing. Condition types control everything from adding a margin to calculating rebates and taxes. Each condition type is identified by a four-character code and performs a specific calculation role in a pricing procedure. Condition types are essential for determining standard prices, discounts, surcharges, freight costs, taxes, and other expenses involved in a business transaction. They allow for the configuration of complex pricing structures tailored to company-specific requirements.
Key Features
- Allows for the inclusion of discounts, surcharges, and taxes
- Configurable for varied pricing scenarios
- Determines how pricing calculations are performed
- Essential for creating pricing strategies tailored to business needs
Common Modules
SAP MM (Materials Management)
Uses condition types for procurement processes involving material price calculations.
SAP SD (Sales and Distribution)
The SAP module that utilizes condition types extensively for managing sales processes, including pricing.
Examples
Configuring a New Condition Type
Steps to create a new condition type in SAP for applying special surcharges.
1. Navigate to SPRO > Sales and Distribution > Basic Functions > Pricing > Pricing Control > Define Condition Types.
2. Click on 'New Entries' to define a new condition type.
3. Enter the condition type code, description, and other relevant details.
4. Save and activate the new condition type.Popular Implementations
Implementing Discount Condition Type
An example of configuring a condition type to apply customer-specific discounts based on predefined conditions such as volume or customer status.